Alliance of property and housing sectors call for bipartisan support and investment for good, affordable housing to confront the housing crisis

Media release

14 December 2022

An alliance of the Property Council of Australia, Community Housing Industry Association NSW, Shelter NSW and Homelessness NSW have today called on the NSW Government to address the housing crisis in NSW.

The Reserve Bank has again increased interest rates, placing further pressure on landlords to pass on the hike to renters. The jump in rents will also add pressure to the social housing waitlist as people are forced to leave the private rental market. The Good Growth Alliance has released a plan for NSW centred on increasing the stock of good quality, affordable homes for everyone and creating liveable communities close to jobs, transport, and infrastructure.

The Good Growth Alliance’s key priorities ahead of the upcoming NSW election include:

– Increasing social housing to 10 per cent of the total housing stock by 2050

– Establishing a 4-year $3 billion Social and Affordable Housing Fund to supplement funding from the Housing Australia Future Fund

– Creating the conditions for ensuring at least 30 percent of any future residential development on former government land be designated as social and affordable housing

– Implementing incentives for private developers to create more affordable rental housing units across all parts of NSW, including density bonuses.

One of the critical priorities for the next NSW State Government will be re-energising the economy after the Covid pandemic and helping to address the cost-of-living pressures from rising interest rates.

There is a growing housing crisis in NSW with rental vacancy rates at an all-time low and a waiting list of 50,000 families and individuals for social housing. Good growth includes diverse communities, inclusion of those less fortunate and the provision of services where they are needed.

The ‘Quantifying Australia’s unmet housing need’ report revealed Inner South West Sydney, South West Sydney and Parramatta were all in the nation’s top five regions with the highest proportion of households with unmet housing needs. Families in regional NSW are also second highest in Australia in experiencing extreme housing distress.

All levels of government across all parties must work together and take leadership in ensuring a strategic approach to planning and infrastructure investment in NSW. Planning for growth must be above the political fray, be solutions-focused and evidence-based.

The state’s population is projected to reach almost 10 million people by 2041, with much of its growth expected to occur in Sydney and the surrounding regions. We need to ensure that the growth and development that occurs will benefit all of the community and that we are planning and investing for success.

Quotes attributable to Mark Degotardi, CEO of Community Housing Industry Association NSW (CHIA NSW):

“With an unprecedented number of people in NSW facing housing stress and homelessness, the demand for affordable housing is out of control.

“We are experiencing a full-blown housing crisis as rental prices skyrocket while the availability of rental housing is at a record low.“

Investment in social and affordable housing, through not-for-profit community housing providers, is the key to addressing the growing crisis in getting people off the social housing waitlist, out of rental housing stress and into long-term affordable housing.”

Quotes attributable to Trina Jones, CEO of Homelessness NSW

“The housing crisis in NSW is also a homeless crisis. People who have always been able to rent are being forced out by cost and finding themselves with no other options.

“We can’t solve this without more housing, it’s as simple as that and we’re calling on both sides of politics to step up and commit to raise the net stock of social housing from the current 4.7 percent to 10 percent.

“Homelessness NSW is urging the NSW Government to partner with the Australian Government to urgently build 5000 net new social housing dwellings a year for ten years to make the start that is so desperately needed by the people waiting ten years on the social housing waiting list.”

Quotes attributable to Adina Cirson, Acting NSW Executive Director of the Property Council of Australia:

“The housing supply crisis in NSW is the biggest challenge facing our state and is poised to become an economic crisis without intervention.

“What is needed by the next government is a laser like focus on the policy levers that can be used to make sure we are all able to deliver against housing targets. 

“We need to make sure we have a diversity of housing supply where and when we need it.”

Quotes attributable to John Engeler, CEO of Shelter NSW

“The private housing market is consistently failing to provide well-located, well-built and truly affordable housing for ordinary people on low incomes.

“The NSW Government has the powers, resources and land to ensure that as the state grows, people are not left behind.”

About the Good Growth Alliance:

The Good Growth Alliance is a partnership of housing, property, and business peak organisations with a shared vision of creating more sustainable and liveable cities and regional areas. Members are the Community Housing Industry Association NSW, Homelessness NSW, the Property Council of Australia, and Shelter NSW.

Download the Good Growth Alliance’s advocacy platform document here.